Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CMT Association
  5. CMT-LEVEL-II

CMT Association CMT-LEVEL-II Exam
CMT Level II Exam (Page 6 )

Updated On: 7-Feb-2026
Page 6 of 54
PDF with 262 Questions

Which of the following would BEST improve the profitability of a trend-based trading system?

  1. Use of additional trend periods
  2. Increase the delay in taking action after a trade signal is given
  3. Utilize support and resistance lines
  4. Utilize candlestick charts instead of bar charts

Answer(s): B



What is the main impediment to making objective trading decisions?

  1. Lack of complete information
  2. Failing to consider trading costs
  3. Conflict between technical and fundamental models
  4. Emotional considerations cloud judgment

Answer(s): D



Which of the following would NOT be true in designing a trading system utilizing bands?

  1. Buy when prices penetrate the upper band
  2. Close out longs when prices reverse and go below the center of the band
  3. Close out shorts when prices reverse and go below the center of the band
  4. Sell when price breaks below the lower band

Answer(s): C



Which of the following are valid interpretations of the put-call ratio?

  1. It is the major sentiment index used for options trading
  2. It is used as a contrary indicator
  3. Extreme levels are trading signals
  4. All of the above

Answer(s): D



Which of the following are true of the concepts of divergence and confirmation in technical analysis?

  1. They are opposite concepts
  2. Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn
  3. Confirmation indicates a likely change in trend since all technical indicators are in agreement
  4. Divergence indicates continuation in trend since different technical indicators do not agree

Answer(s): A






Post your Comments and Discuss CMT Association CMT-LEVEL-II exam prep with other Community members:

Join the CMT-LEVEL-II Discussion